Dunkin' Brands Stock Down 10% On Revised Guidance

Forbes

The company started the year with a decline in comparable store sales growth in the U.S. to 1.2%, due to adverse weather conditions in North America. The company then reaffirmed its performance guidance for the 2014 fiscal year and was expecting to generate a net income of $1.79 to $1.83 per share. However, in the second quarter, the company again delivered disappointing results, as comparable store sales of the Dunkin' Donuts U.S. segment increased just 1.8% due to strong competitive activity in the fast food segment, whereas the company was expecting the comparable sales to bounce back to the range of 3%-4%, as the weather improved in the second quarter.

view Forbes